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rapie Line 9 (a) Check (ii) (b), (c) & (d) Not applicable (e) & (f) No Compensation of Officers (Form 1125-E): (a) (b) (c) (d) Mary Travis XXX-XX-XXXX 100% 50% $290,000 John Willis XXX-XX-XX 100% 25% 180,000 Chris Parker XXX-XX-XXXX 100% 25% 180,000 Total $650,000 Bad Debts: For tax purposes, the corporation uses the direct writeoff method of deducting bad debts. For book purposes, the corporation uses an allowance for doubtful accounts. During 2019, the corporation charged $40,000 to the allowance account, such amount represent- ing actual writcoffs for 2019. Additional Information (Schedule K): 1 b Accrual 2 a 451140 b Retail sales Musical instruments 3 No . b Yes; omit Schedule G Sa No b. No 6-7 No 8 Do not check box 9 10 11 12 13-14 IS a b 16-23 24 25 Fill in the correct amount 3 Do not check box Not applicable No 4. No Do not check box No No No Organizational Expenditures: The corporation incurred less than 55.000 of organizational expenditures in the year began business. For book purposes, the corporation expensed the entire expenditure lor tax purposes, the corporation elected under Sec. 218 to declict the entre amount of ex- penditures in the year it began business. Therefore, no amortization expenditures appear in the tax return or hook financial statements for the current vean rapie Line 9 (a) Check (ii) (b), (c) & (d) Not applicable (e) & (f) No Compensation of Officers (Form 1125-E): (a) (b) (c) (d) Mary Travis XXX-XX-XXXX 100% 50% $290,000 John Willis XXX-XX-XX 100% 25% 180,000 Chris Parker XXX-XX-XXXX 100% 25% 180,000 Total $650,000 Bad Debts: For tax purposes, the corporation uses the direct writeoff method of deducting bad debts. For book purposes, the corporation uses an allowance for doubtful accounts. During 2019, the corporation charged $40,000 to the allowance account, such amount represent- ing actual writcoffs for 2019. Additional Information (Schedule K): 1 b Accrual 2 a 451140 b Retail sales Musical instruments 3 No . b Yes; omit Schedule G Sa No b. No 6-7 No 8 Do not check box 9 10 11 12 13-14 IS a b 16-23 24 25 Fill in the correct amount 3 Do not check box Not applicable No 4. No Do not check box No No No Organizational Expenditures: The corporation incurred less than 55.000 of organizational expenditures in the year began business. For book purposes, the corporation expensed the entire expenditure lor tax purposes, the corporation elected under Sec. 218 to declict the entre amount of ex- penditures in the year it began business. Therefore, no amortization expenditures appear in the tax return or hook financial statements for the current vean

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